Q-3 Consider Folger Corporation Could Cut its COGS by 13%, update earnings and expenses of Folger Corporation and explain the Financial Impact of Cost Savings in the Folger Corporation. Earnings and Expenses (in $ millions) Explain the Profit leverage effect by Sales $60,000,000 calculating: Cost of goods sold (COGS) $40,000,000 (a) New profit margin Pretax Earnings $6,000,000 (b) New ROA Selected Balance Sheet Items Merchandise inventory $3,500,000 Total Assets $9,000,000 New Pretax Profit margin New Return on assets (ROA) %